This paper applies Margaret Archer’s morphogenetic approach to analyze the transformation of China’s political economy between 1976 and 1997. It examines how the Chinese Communist Party (CCP) maintained its political legitimacy following Mao Zedong’s death while implementing extensive economic reforms. Archer’s theory offers a robust framework for disentangling the interactions between structures, agents, and actors during this critical period of crisis and change. Through the concepts of double and triple morphogenesis, the analysis highlights the dynamic interplay between the CCP’s internal factions—such as the reformers and conservatives—and individual actors like Hua Guofeng, Deng Xiaoping, and Jiang Zemin. The study argues that the CCP’s market reforms were not merely a legitimacy compromise with the population but a strategic necessity to secure military loyalty and stabilize institutional hierarchies. By 1997, the morphogenetic process culminated in the institutionalization of the “core” leadership role, ensuring the CCP’s continued dominance. This theoretical framework demonstrates how structural and agency transformations were interwoven in China’s post-Mao political economy.